An Internal Control Questionnaire for Purchases and Accounts Payable Could

question 30

Short Answer

An internal control questionnaire for purchases and accounts payable could include the following questions. Match the question to the appropriate control objective and place the identifying letter in the space provided.
A: Environment
B: Validity
C: Completeness
D: Authorization
E. Accuracy
F. Classification
G: Proper period
____ 1. Are receiving reports pre-numbered and accounted for?
____ 2. Are all purchases orders supported by properly approved purchase requisitions?
____ 3. Are vendors' invoices listed immediately upon receipt?
____ 4. Are vendors' invoices matched against purchase orders and receiving reports before a liability is recorded?
____ 5. Is the purchasing department independent of the accounting, receiving, and shipping departments?
____ 6. Are vendors' invoices checked against purchase orders and receiving reports for quantities, prices, and terms?
____ 7. Does the accounting procedures manual require that transactions be recorded on the date that goods and services are received?
____ 8. Are all goods returned to vendors supported by properly approved shipping documents?
____ 9. Is the chart of accounts adequate?
____ 10. Are vouchers and attached documents cancelled after being recorded?

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Definitions:

Acquiring Firm

A company that purchases or takes control of another company through a merger, acquisition, or takeover.

Proxies

Proxies are documents authorizing a person to vote on another shareholder's behalf during a company's shareholder meeting.

Takeover

The acquisition of one company by another, in which the acquiring company obtains majority control over the targeted firm.

Acquired Firm's Management

The executive and leadership team of a company that has been acquired by another entity.